This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
The Cash Flow Statement is an analysis of sources of cash that flowed into and out of the business for the accounting period. The information is grouped by functional departments, because Cash can be freed up from anywhere (such as getting customers to pay faster, or paying suppliers more slowly), not just from Sales or the Finance Department.
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Cash Flow Statement Equation: CF from Operations + CF from Investing + CF from Financing = Net Change in Cash For a DIY Cash Flow Statement Calculator, go here. |
Also known as the Statement of Cash Flows.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.